Gossan Resources Limited

Gossan Resources Limited

March 14, 2005 11:55 ET

North American Palladium Options Gossan's Bird River Property


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: GOSSAN RESOURCES LIMITED

TSX VENTURE SYMBOL: GSS
FRANKFURT SYMBOL: GSR

MARCH 14, 2005 - 11:55 ET

North American Palladium Options Gossan's Bird River
Property

WINNIPEG, MANITOBA--(CCNMatthews - March 14, 2005) - Gossan Resources
Limited (TSX VENTURE:GSS)(Frankfurt/Freiverkehr:GSR) has entered into an
Option and Joint Venture Agreement on its Bird River Property with Lac
des Iles Mines Ltd., a wholly-owned subsidiary of North American
Palladium Ltd. The Property, encompassing 6,778 hectares (16,748 acres),
covers over 21 kilometres of the Bird River Sill Complex. This complex
carries significant concentrations of palladium and platinum along with
nickel, copper, zinc and chromite. The Bird River Property is located
about 40 km east of Lac Du Bonnet, Manitoba and, along the Sill,
approximately 6 km west and northwest of Mustang Minerals' Maskwa
Deposit.

Under the terms of the Agreement, Lac des Iles Mines Ltd. ("LDI") can
earn an undivided 50% interest in the Bird River Property by spending
$2.5 million on exploration and making cash payments of $400,000 to
Gossan by August 30, 2008. Thereafter, LDI can earn a further 15%
interest by completing a bankable feasibility study and an additional
10% interest, to a total 75% interest, by arranging project financing.
LDI must also make annual advance royalty payments of $100,000, payable
semi-annually, until commercial production is achieved. In the first
stage of this Agreement, LDI's work expenditure commitment is $400,000
of exploration expenditures by August 30, 2005 and make an initial cash
payment of $50,000.

North American Palladium Ltd. (PDL-TSX & PAL-Amex) is Canada's only
primary producer of palladium and is the owner/operator of the Lac des
Iles Mine located northwest of Thunder Bay, Ontario.

Ryan Cooke, P.Geo., is the Qualified Person supervising the Bird River
Property on behalf of Gossan. Additional information regarding recent
developments on the Bird River Sill, published as an extract of a
Manitoba Geological Survey presentation, is available at
www.gossan.ca/mgs.pdf.

Gossan Resources Limited is engaged in mineral exploration in Manitoba
and northwestern Ontario. It has a well-diversified portfolio of
properties hosting gold, platinum group and base metals, as well as the
specialty metals, tantalum, chromium, titanium and vanadium. The Company
also has a large deposit of magnesium-rich dolomite and a silica sand
prospect. Gossan trades on the TSX Venture and the Frankfurt/Freiverkehr
& Xetra Exchanges and has 17,418,124 shares outstanding (21,043,124
shares fully diluted).


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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Gossan Resources Limited
    Douglas Reeson
    Chairman & CEO
    (416) 533-9664
    info@gossan.ca
    www.gossan.ca
    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this news release.